How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic shocks. Losses, on the other hand, diminish a bank's ability to do those things.
Lincoln Community Bank did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.
One key measure of a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Lincoln Community Bank's most recent annualized quarterly return on equity was 9.48 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $639,000 on total equity of $6.9 million. The bank experienced an annualized return on average assets, or ROA, of 1.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.